The country’s largest public sector bank, State Bank of India (SBI), has once again shocked its customers. The bank has cut fixed deposit (FD) interest rates by 0.20% (20 basis points), which has come into effect from May 16, 2025. This is the second time SBI has reduced SBI FD interest rates within a month. This reduction will be applicable to all tenures and customer categories, including general citizens and senior citizens.
SBI FD Interest Rate Cut – May 2025 Update
- 7-45 days: 3.3% (earlier 3.5%)
- 46-179 days: 5.3% (earlier 5.5%)
- 180-210 days: 6.05% (earlier 6.25%)
- 211 days-less than 1 year: 6.3% (earlier 6.5%)
- 1 year-less than 2 years: 6.5% (earlier 6.7%)
- 2 years-less than 3 years: 6.7% (earlier 6.9%)
- 5 years-10 years: 6.3% (earlier 6.5%)
SBI FD Interest Rates (Effective May,2025)
| Tenure | Old Rate (%) | New Rate (%) |
|---|---|---|
| 7 – 45 days | 3.5% | 3.3% |
| 46 – 179 days | 5.5% | 5.3% |
| 180 – 210 days | 6.25% | 6.05% |
| 211 days to < 1 year | 6.5% | 6.3% |
| 1 year to < 2 years | 6.7% | 6.5% |
| 2 years to < 3 years | 6.9% | 6.7% |
| 5 to 10 years | 6.5% | 6.3% |
| Amrit Vrishti (444 days) | 7.05% | 6.85% |
Latest SBI FD Interest Rates (General Citizens)
- Interest rates for senior citizens are 0.50% higher, and super senior citizens (above 80 years) will get an additional 0.10% interest.
- Interest rates for general citizens now range between 3.3% to 6.7%, while for senior citizens it ranges between 3.8% to 7.3%.
Amrit Vrishti FD Scheme – Updated Rates
SBI FD has also reduced the interest rates of its special 444-day FD scheme ‘Amrit Vrishti’ by 0.20%. Now in this scheme, general citizens will get 6.85% and senior citizens will get 7.35% interest, which was earlier 7.05% and 7.55% respectively.
Why was the cut made?
This cut has been made after the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points in April 2025, after which many banks changed their FD rates. RBI reduced the repo rate to 6% and changed its policy from ‘neutral’ to ‘accommodative’, making it cheaper for banks to borrow. This reduced the need for FDs with high interest rates for banks.
Impact on Investors – Should You Still Invest in SBI FD?
This reduction will affect those investors who depend on stable income by investing in FDs. New FDs will now get lower returns, which may affect their income. However, the old interest rates will continue to apply on existing FDs until they mature. Experts suggest that investors compare the interest rates of other banks and take a decision based on their investment goals.
1. When did SBI’s new FD interest rates come into effect?
SBI’s new FD interest rates will be effective from May 16, 2025.
2. How much did SBI cut FD rates?
SBI cut fixed deposit rates by 0.20% (20 basis points) across all tenures.
3. What is the new interest rate for Amrut Vrishti 444-day FD?
For general citizens it is now 6.85%, and for senior citizens it is 7.35%.
4. Will the new rate cut affect old SBI FDs?
No. Existing FDs will continue to earn interest at the rate fixed at the time of investment.
5. What is the FD interest rate for senior citizens now?
Senior citizens will now earn interest between 3.8% to 7.3% depending on the tenure.
